justatrader

Dollar Index declines ahead of FOMC

Short
INDEX:DXY   US DOLLAR CURRENCY INDEX
9
Wednesday's FOMC will be interesting to watch.

Dollar Index broke out from the main sloping price channel , retested the break out level, formed a bearish flag .

Nice confluence with 127.2% level with previous support of the price channel and confluence of RSI divergence with 161.8% of the flag's final target.

This short term weakness simply means the DXY is poised for bigger gains in the coming months.

Question is how soon will the decline be. If the targets are not reached before FOMC.. then it could possibly mean the overenthusiastic markets could probably set itself up for some disappointment.

Should be a good chart to watch the game between Technical Analysis and Fundamental Analysis .